The Senate Committee on Economic Development and Tourism offered the following
substitute to SB 108:
A BILL TO BE ENTITLED
AN ACT
To amend Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated,
relating to property owners' associations, so as to provide for certificates of good standing
for payment of annual assessments; to require associations to offer to participate in
alternative dispute resolution prior to the effectuation of a lien on a lot for unpaid
assessments; to require associations to act in good faith in such alternative dispute resolution;
to provide for the recovery of attorney's fees by lot owners; to provide that such a lien shall
be inferior to liens for unpaid medical bills; to provide for alternative dispute resolution
policies and requirements therefor; to provide for a definition; to provide for related matters;
to provide for applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 6 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to
property owners' associations, is amended by adding a new subsection to Code Section
44-3-225, relating to assessment of expenses, exemption from liability, and liability for
unpaid assessments, to read as follows:
<ins>"(e) For each lot for which all assessments and other amounts due to the association have
been paid in full, the association or its authorized agent shall provide the lot owner a
certificate stating that such lot is in good standing within 45 days of the end of each fiscal
year and without cost to the lot owner."
</ins> SECTION 2.
Said article is further amended by revising subsection (a) of Code Section 44-3-232, relating
to assessments against lot owners as constituting lien in favor of association, additional
charges against lot owners, procedure for foreclosing lien, and obligation to provide
statement of amounts due, as follows:
"(a)(1) All sums lawfully assessed by the association against any lot owner or property
owners' association lot, whether for the share of the common expenses pertaining to that
lot, fines, or otherwise, and all reasonable charges made to any lot owner or lot for
materials furnished or services rendered by the association at the owner's request to or on
behalf of the lot owner or lot, shall, from the time the sums became due and payable, be
the personal obligation of the lot owner, and <ins>shall, from the time the association
completes its requirements pursuant to Code Section 44-3-232.2,</ins> constitute a lien in favor
of the association on the lot prior and superior to all other liens whatsoever except:
<ins>(1)(A)</ins> Liens for ad valorem taxes on the lot;
<ins>(2)(B)</ins> The lien of any first priority mortgage covering the lot and the lien of any
mortgage recorded prior to the recording of the declaration; <del>or
</del> <ins>(3)(C)</ins> The lien of any secondary purchase money mortgage covering the lot, provided
that neither the grantee nor any successor grantee on the mortgage is the seller of the
lot; <ins>and
(D) Liens on the lot for unpaid medical bills.
</ins>
<ins>(2)</ins> The recording of the declaration pursuant to this article shall constitute record notice
of the existence of the lien <ins>provided for in paragraph (1) of this subsection,</ins> and no further
recordation of any claim of lien for assessments shall be required."
SECTION 3.
Said article is further amended by adding a new Code section to read as follows:
<ins>"44-3-232.2.
(a) As used in this Code section, the term 'alternative dispute resolution' means mediation,
arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the
decision-making process.
(b)(1) An association shall adopt a written policy providing for a fair, reasonable, and
expeditious alternative dispute resolution procedure for resolving any dispute regarding
sums assessed by the association.
(2) The association shall provide a copy of such policy to each lot owner annually and
shall make a copy of such policy available to a lot owner upon request.
(c) In developing an alternative dispute resolution procedure pursuant to this Code section,
an association shall make maximum reasonable use of available local dispute resolution
programs involving a neutral third party, including low-cost mediation programs.
(d) A fair, reasonable, and expeditious alternative dispute resolution procedure shall, at a
minimum, satisfy all of the following requirements:
(1) The procedure may be invoked by a lot owner. A request invoking the procedure
shall be in writing;
(2) The procedure shall provide for prompt deadlines. The procedure shall state the
maximum time for the association to act on a request invoking the procedure;
(3) If the procedure is invoked by a lot owner, the association shall participate in the
procedure; and
(4) A lot owner shall not be charged a fee to participate.
</ins>
<ins>(e) The lien for unpaid assessments or other charges as provided for in Code
Section 44-3-225 shall not be created unless the association offers the lot owner
participation in alternative dispute resolution in accordance with this Code section, and, if
so requested by the lot owner, the association participates in such alternative dispute
resolution.
(f)(1) In any alternative dispute resolution conducted pursuant to this Code section, the
parties shall act in good faith in all matters relating to the alternative dispute resolution,
including, but not limited to, making reasonable efforts to promptly conclude such
alternative dispute resolution.
(2) In any alternative dispute resolution conducted pursuant to this Code section wherein
any party violates the provisions of paragraph (1) of this subsection, the aggrieved party
shall be entitled to recover reasonable attorney's fees incurred as a result of participating
in such alternative dispute resolution."
</ins> SECTION 4.
This Act shall not apply to contracts entered into prior to July 1, 2025, before the expiration
or first renewal of such contract.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.